Times Co. Profit Falls; New Subscription Model Is Set
The New York Times Company has been facing declines in first quarter revenue. In one year the income per share has fallen from 28 cents to 2 cents. This huge loss in net income is largely due to the decline in advertising revenue. New York Times executives attributed the loss in advertising revenue to the decline in spending by movie studios and real estate developers.
Despite the loss of income, The New York Times as a paper this past year has been successful. Their overall circulation revenue rose by over six percent. This is because more people are subscribing digitally and because of the hike in prices for print newspapers.
Even though the amount of subscriptions both digitally and print have rose, they are still making strides to expand. As Mark Thompson, The New York Times president and chief executive stated, “We will be rolling out other strategic initiatives designed to further leverage The Times brand and newsroom to create new products and services for a wider range of customers, domestically and around the globe.”